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Company Law Reform Bill [HL]

We shall have to return to this issue on Report. It has been an interesting clarifying debate but I believe that one of the central points, referred to by my noble friends Lady Noakes and Lord MacGregor, has not been answered. Our argument concerns a director who may be approached to join the board of a company in, for example, a similar industry such as the oil and gas industry. A company on whose board the director already serves might be exploring in Russia and another company might say, ““Because of the expertise you have, will you join the board exploring in South America?”” Irrespective of whether the directors of the company approaching the non-executive director to serve on the second board are minded to authorise a non-executive director on that second company and therefore avoid the conflict of interest, the reality is that those who may be considered to be appointed as directors will not take up the offer. It is simply because of the time sequence involved. Perhaps I am not explaining the point as clearly as I should, so let me repeat it. The matter has been authorised by the directors after the fact, when the individual has joined the board, but because of the first line of Clause 159(1), directors will be put off applying for, or even being approached to join, the board of companies within the same industry. We may wish to return to this matter.